Mortgage scam ends with prison

Watchdog

November 19, 2009|By Paul Muschick Of The Morning Call

A judge didn't hold back when Shirley Matthews appeared before him Tuesday to be sentenced for stealing from a Monroe County man instead of helping him save his home from foreclosure, as she was hired to do.

"It's outright theft and thievery," Monroe County President Judge Ronald Vican told her. "It's the lowest form of disreputable conduct."

He sentenced Matthews, who an Allentown woman says also ripped her off in a mortgage rescue scam, to two to five years in state prison.

"She's made a practice of this," Vican said, noting her prior theft record as he rejected her lawyer's request for a lighter sentence. "And she's picked on people who are really vulnerable."

I've told you before about Matthews and her company, Uoninc, which marketed itself as a "loss mitigation" firm helping people modify loans and prevent foreclosure.

I wrote about how Susan Wood of Allentown paid Uoninc, of Wilkes-Barre, $1,300 to renegotiate her mortgage. Wood told me, and her mortgage company confirmed, that Uoninc made initial inquiries then disappeared, leaving her to renegotiate herself.

Wood never went to police, but Dennis Cardriche of Marshalls Creek did, which is what put Matthews behind bars.

Matthews, 53, formerly of Wilkes-Barre, was convicted in July of theft by deception, theft by failure to make required disposition of funds and deceptive business practices.

Court records say Cardriche paid Matthews to renegotiate his mortgage through Uoninc. Instead, she kept the $8,131 she was supposed to turn over to his mortgage company.

Yes, he said, she kept the money. But she felt she earned it because she did renegotiate the loan, despite what authorities allege.

"This gentleman has a house ... because of Ms. Matthews," Saurman said. "She did not take money and do nothing."

Saurman told Vican evidence had been presented at trial proving the work she did. He said the issue was whether Matthews was entitled to keep the mortgage money for her services, in addition to the fee she'd been paid. She believed she was.

But Vican, who had presided over Matthews' trial, remembered it differently, that she initially worked for Cardriche and then stopped.

"I'm not buying into it," Vican said. "The jury didn't buy into it."

In addition to the prison time, Matthews was ordered to repay Cardriche. Saurman said she'd already paid some.

Matthews was supposed to be sentenced in September. Instead, she was led away in handcuffs on new charges, based on similar accusations of loan modification fraud in Wyoming County.

She's charged with three counts of theft and one count of deceptive or fraudulent business practices in connection with loan modification work she was hired to do by Gary Hackling of Tunkhannock.

Hackling told authorities he paid her $9,435, with the understanding that Matthews would pay $8,000 to his mortgage company. Matthews contacted his bank and delayed a sheriff's sale, but didn't do anything else and Hackling renegotiated his loan himself, according to an affidavit.

Saurman said he's working on a plea agreement in that case, and she's "taking responsibility for her actions there."

Matthews also remains under investigation by the state attorney general's office, which has received complaints about Uoninc.

Monroe County Court records say Matthews twice was found guilty of theft by deception 10 years ago in New Jersey; had 15 liens or civil judgments filed against her, totaling $44,000, from 1988 to 2005; and filed for bankruptcy nine times, with every case being terminated.

Vican said Matthews is playing the system to duck debts instead of "doing the right thing."

Matthews didn't have much to say before she was led away Tuesday.

"I guess you basically said it all, your honor," she said.

Saurman said he may file a motion asking the court to reconsider the sentence, and has the option of appealing her conviction.

Foreclosure rescue scams have gotten the attention of authorities across the nation, including the FBI, Internal Revenue Service and Federal Trade Commission.

On the day Matthews was sentenced, U.S. Attorney General Eric Holder announced in Washington the creation of a financial fraud task force to take on issues like mortgage fraud. Holder said the FBI is investigating 2,800 mortgage fraud cases, nearly 400 percent more than five years ago.

In Maryland, a former exotic dancer turned money store president was sentenced Monday to 151 months in prison in connection with a credit repair and mortgage rescue scheme that netted $16 million.

The judge described her as a "vulture," according to The Washington Post, and said he hoped her sentence would deter others from taking advantage of vulnerable people.

If you're facing foreclosure, try renegotiating your mortgage terms yourself. You don't have to hire someone. They can't do anything you can't do yourself.

If you're not up to it, nonprofit agencies will help for free. Check the list at www.hopenow.com or 888-995-HOPE. There are several in the Lehigh Valley.

If you opt to pay someone, make sure the company you hire is licensed by the state Department of Banking. Check at www.banking.state.pa.us/ or 800-PA-BANKS.

Also check it out with the Better Business Bureau, and search online. Authorities are publicizing their investigations, and there is a lot of information on companies and individuals facing allegations.

The Watchdog is published Thursdays and Sundays. Contact me by e-mail at watchdog@mcall.com, by phone at 610-841-2364 (ADOG), by fax at 610-820-6693, or by mail at The Morning Call, 101 N. Sixth St., Allentown, PA, 18101. Follow me on Twitter at mcwatchdog.